luxury box
luxury box The fashion business excels in the business of experiencing problems during COVID-19. Large quantities of unsold and outdated items are one of the conflicts with this business. It brings to life that many brands don’t dare release new collections.
That’s why two startups, Heat (London) and Scarce (New York), sell them from brands like luxury random boxes or Luxury Mystery Boxes, where buyers get products with a higher total value than the average face value of two to three times more than the average face value.
Buyers who buy luxury box random boxes will not know what is inside luxury box until they open the box and can only determine the size of the shirt. Pants, guess shoes, and specifically pointed out that they are for males or women.
Some boxes may indicate which brand you want to get specifically, but they don’t specify what striped shirt they are. What style of pants? Everything needs to be won in the next one.
If you look at it superficially, it may not look like “old liquor in a new bottle”, but it’s about tying up a lot of different products. Inside the closed boxes, these gimmicks turn into something that creates something.
The origin of the concept
Joe Wilkinson One of Heat’s co-founders explained that he and his partner came up with the idea by opening a random box on YouTube and seeing a trend that attracted a lot of attention, so they agreed to use the above-mentioned tips to make it into a luxury box business.
His category starts now from scratch by selecting products that have passed the past, which the brand hasn’t sold out, and putting together a variety of products. Inside the box, the design is good, it has a price.
As soon as Heat launched in November 2019, the ideas obtained from youtube videos brought about them instantly selling thousands of boxes of products.
Buyers can choose from a streetwear box that is a female or contemporary clothing line that will get more expensive fashion products.
Scarce of the New York side luxury box only started now in early December, a time when many brands wanted to release their old collections that were in stock because of the covid-19 pan effect. It leaves so many brands with so much stuff that they barely have storage.
Even if it’s an idea that plays with feelings. But both Heat and Scarce also have the principle of product return luxury box for disappointed people, which must be returned inside in 14 days and will need to return the whole box, unlikely to be one of them. Moreover, the consumer must be the recipient, not liking the shipping cost itself.
With the guidelines as mentioned above, As a result, the return rate is not so high, so Heat has 10-15% of buyers returning the box, the moment Scarce reports that only 5% of the boxes are returned.
The return rate of the products mentioned is very low for the sunset nation, and in the U.S., specifically, the purchase of products at the mall or store is already 5-10% refundable. Ecommerce channels generate up to 15-40% returns.
luxury box
Why do people buy random boxes?
The Wall Street Journal conducts interviews with young people who are objective groups and concludes that there are three common luxury box reasons why this business model luxury box has achieved success.
In addition to selling backlogs, both Heat and Scarce have made random boxes of his category more attractive than ever. By placing the box to look good at a price and bringing influencers to help promote it. By using social network opportunities to benefit.
Heat currently has over 650,000 Instagram followers, while Scarce, who started the business last month (Dec 2020), already has 116,000 followers on the same platform.
The success of this business suggests that many customers, people, are not interested in the need to rush to dominate the new collection now. Bringing out products for a while, adding value and price by putting them in random boxes, is another way to answer the question of modern consumers looking for branded products at lower values and prices.
Next up is value and price, for people who are on a tight budget but want products that are much higher in value than what they pay. Because at least there is still a chance to be specific to the brand that they are impressed with, and can be reclaimed in a story that really touches hope.
And the end result is the popularity of the brand, which is something that the younger generation cares about more than the product itself. Many people do not care what kind of clothes they look like, as long as they have a brand logo asking for mercy on it. The luxury box es
luxury box
Adapt to the modern day
Jacob Metzker and Yossi. Chetrit Scarce’s management revealed that in 2020, earlier in the day, Among them, he began looking for products from exchange and brand organizers in both Europe and the U.S. Since those products haven’t gone on sale. As a result, many brands have a lot of interest in the release of goods. In order to reduce the stock that is not expected to sell out.
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